Procurex, a company that provides purchasing services to business clients, in association with Shaw Environmental has implemented its reverse auction technology to run an online auction for energy efficiency grants on behalf of the Missouri Department of Natural Resources.
The Missouri Department of Energy has utilized Procurex’s online reverse auction to provide $3m divided into $100,000 (10 grants), $250,000 (4 grants), and $500,000 (2 grants), in incentives on a $/kWh saved basis for expected energy efficiency projects.
The averaged promised price-effectiveness that emerged as a result of the three structured auctions was 3.97 cents per kilowatt hour of saved energy, comparable to the average cost of other utility energy efficiency programs, ranging from 4.7 to 13.3 cents per kilowatt-hour.
The implementation of these programs is expected to save the state of Missouri up to 75 million kWh of energy, equivalent to powering 6,537 homes for a year.
Procurex CEO Bret Grady said that the company is pleased with the results that it has delivered with this auction that has worked so well in other categories such as energy, commodities, and services was applied very successfully for the State of Missouri.
“I would expect given these results that we will be running similar events for other states and municipalities looking to replicate these savings,” Grady said.